- The definition of a technology company is getting looser
- The market should change its language to keep up with its own transformation
It became impossible to ignore the market’s dubious definition of a 'technology' company when WeWork tried to IPO two years ago. How could a business that rented out desk space, with losses of $1.6bn on revenues of $1.8bn, be a tech stock that warranted a $47bn market cap? Pundits bickered until the flotation was eventually shelved, and briefly put the issue of questionable 'tech' companies out of sight.
But the issue is crawling back into the mainstream. Not least in the shape of Deliveroo (ROO), the food delivery app whose flotation on the LSE flopped earlier this year. It joins a growing list of businesses that are billing themselves as tech companies, reaping hyped valuations and drawing in a flurry of new retail investors chasing the next tech megatrend.